Customer Protection Enhancements - white paper

Discussion in 'Wall St. News' started by Options12, Feb 19, 2012.

  1. Options12

    Options12 Guest PAPER on Customer Protections 2012.pdf

    In order to ensure customer confidence in the futures industry, the Commodity Customer Coalition (CCC), formed by MF Global customers affected by the firm’s bankruptcy, proposes six ideas that would protect customer assets from brokerage insolvency. CCC members include not only futures industry customers - varying from retail speculators to high-frequency traders to true hedgers – but also brokerage firms, regulators and legislators.

    CCC proposes six low-cost changes to regulation, policies and bankruptcy law that would bolster the already robust financial protections in place for commodity customers. These include: (1) correct the tierd approach to regulating FCM categories; (2) bring financial oversight for all brokers under the purview of CME Group; (3) require daily customer fund segregation reports for all FCMS;(4) establish commodity customers as the first in line for recovered segregated funds in a bankrupt FCM’s estate; (5) encourage CME Group to double and broaden its Protection Fund, with industry support, and encourage other exchanges to make similar efforts; and (6) research protection of other customer fund types, including foreign and forex.
  2. And...the number one enhancment...

    Sweep excess cash out of your account each day.
  3. there's only one 'protection' - insurance